Refiners adjust sourcing as war rattles markets
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- Federation of Thai Industries' Petroleum Refining Industry Club reported that Thailand's major oil refineries continue operating smoothly despite the Middle East conflict.
- Rungnapa Janchookiat noted that crude imports from the Middle East fell from about 70% to 30% as shipments were rerouted away from the Strait of Hormuz.
- Thai refineries have accelerated procurement, expanded floating storage, and increased refined oil reserves, lifting stock levels above normal.
- PTT Plc is shifting its LNG procurement, now sourcing less than half of its LNG imports through the Strait of Hormuz and increasing reliance on overseas LNG.
- Myanmar's contribution to Thailand's gas supply dropped from 30% to 11%, while the Gulf of Thailand's share fell from 70% to 54%.
- Imported LNG now makes up 35% of Thailand's total gas supply, highlighting a growing dependence on foreign sources.
Why it matters: The shift cuts Middle‑East crude and gas shipments by roughly half, boosting demand for West African oil and U.S. LNG while raising Thailand’s strategic reserves. Domestic gas producers lose market share as imported LNG climbs to 35% of total supply.